Life Insurance Licensing: California's Essential Requirements

If you want to sell life insurance in California, you'll need to get a license. The type of insurance policies you plan to sell will determine the type of license you need. For example, you'll need a Property & Casualty (P&C) license to sell auto, home, or business insurance. If you want to sell life insurance, you'll need a Health and Life license. There are several steps to getting your insurance license in California, including completing pre-licensing education, taking a state licensing exam, and applying for your license.

Pre-licensing education requirements

To sell insurance in California, you must hold a valid insurance license. The first step to obtaining this license is to complete a prelicensing education course. The state of California requires potential agents to complete 20 hours of prelicensing education for each line of authority they wish to be licensed in (health insurance, life insurance, property and casualty insurance, or any combination). In addition to the 20 hours of prelicensing education, applicants must also complete 12 hours of Ethics and California Insurance Code, including 1 hour of anti-fraud training. This totals 32 hours of prelicensing education requirements.

Pre-license education courses are self-paced and include study materials like practice exams, flashcards, and manuals. These courses are designed to equip you with the necessary information and tools to prepare for your state licensing exam. It is important to note that California requires your online study time to be tracked, and you must complete the required number of hours. Biodata/security questions are also required to confirm your identity and ensure that you completed the course.

After completing your prelicensing course, you must register for and pass the state licensing exam. This exam can be taken in-person or remotely, but you must ensure that your computer is compatible with the remote testing platform. On the day of your exam, bring a valid form of government-issued identification that includes your name and photograph. Once you have passed the exam, you are ready to apply for your insurance license.

State licensing exam

To get a life insurance license in California, you must pass a state licensing exam. This exam is based on the California Insurance Code and requires knowledge of ethics and insurance-selling procedures.

California requires potential agents to complete 20 hours of prelicensing education for each line of authority before attempting the state exam. This includes 12 hours of Ethics and California Insurance Code, with 1 hour dedicated to anti-fraud training. This pre-license education is essential to prepare for the state licensing exam, as the exam will test very specific industry knowledge. These courses are self-paced and include study materials like practice exams, flashcards, and manuals.

After completing the prelicensing education, you must get a fingerprint-based background check. The fee for fingerprinting services is $59, plus additional processing fees. Once this is done, you can take the state licensing exam.

The state licensing exam can be taken remotely or in person. Remote exams are completed on the PSI Bridge remote testing platform, while in-person exams can be taken at a PSI Exam site or the California Department of Insurance location in Los Angeles.

After passing the state licensing exam, you are ready to apply for a life insurance license in California.

Fingerprint-based background check

To obtain a life insurance license in California, you must complete a fingerprint-based background check. This is a mandatory step before you can take the California life insurance licensing exam. The fingerprinting requirement is necessary to ensure that applicants do not have a criminal record that could prevent them from holding an insurance producer's license in California.

The California Department of Insurance (CDI) requires fingerprint impressions from all unlicensed applicants. The process involves submitting your fingerprints electronically or through a mail-in fingerprint card scan. The fingerprints are then sent to the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) for processing and background checks.

To complete the fingerprint-based background check, you must follow these steps:

• Register through the CLS Online Portal or contact the CDI's contracted fingerprint vendor, Accurate Biometrics.
• Pay the applicable fees, which include a processing fee of $59 for Accurate Biometrics or $68.95 at a PSI test center, along with the FBI processing fee of $17, the Department of Justice processing fee of $32, and the CDI contractor rolling fee of $10.
• Complete the required forms, including the Request for Live Scan Service (Form BCIA 8016) and the Licensing Applicant Instructions (Form LIC 442-39A).
• Schedule an appointment at one of the live scan locations or submit your fingerprint card scans by mail.

It is important to note that the fingerprint results may take time to process, and you should allow for potential delays. If your fingerprint results are not shown as "Completed" within 45 days of submission, you should contact the CDI for further information.

Once your fingerprint-based background check is completed and you have passed the California life insurance licensing exam, you can proceed with the remaining steps to obtain your life insurance license in California.

License renewal

To sell life insurance in California, you need to obtain a license from the California Department of Insurance (CDI). This license needs to be renewed every two years. The CDI will email a renewal notice approximately 90 days before your license expires. The license expiration date is also shown on the front of the license.

If you do not receive a renewal notice, you can check your license status online to review your license expiration date and continuing education credits. After reviewing your license status, you can use Sircon's Renewal or Reinstate a License service. You can continue transacting business after your license expires, provided that the CDI has received your renewal fee and that the continuing education hours were completed before the expiration date.

If you choose to use a paper license renewal form, it takes approximately two to three weeks for the review process to take place. As soon as the "late" renewal is processed, it will be immediately reflected on CDI's website. If your renewal is late, a 50% penalty fee is required, and all insurance company appointments must be re-established with the appropriate forms and fees.

To renew your license, you must submit a renewal application. You can renew your license through the Resident License Renewal application up to the license expiration date. After the expiration date, you must reinstate your license by visiting https://www.sircon.com/. You may reapply one year after the expiration date through the Resident Licensing application.

California licensees must complete and submit their own renewal application. As stated in Section 1652(a) of the California Insurance Code, licensees must declare, under penalty of perjury, that the contents of the renewal are true and correct. Criminal convictions and driving-related misdemeanours must be disclosed.

To obtain a California insurance license, you must first complete a prelicensing education course. A.D. Banker offers prelicensing courses that will prepare you to pass the state exam on your first attempt. California requires potential agents to complete 20 hours of prelicensing education for each line of authority before attempting the state exam. In addition, 12 hours of Ethics & California Insurance Code, containing 1 hour of anti-fraud training, must be completed. Upon the completion of the prelicensing course, you will be issued a Certificate of Completion to submit to the CDI upon request. This certificate is valid for 3 years. After you finish your prelicensing course, you can take the state licensing exam. You must score 60% or higher to pass. After you have passed your exam, you're ready to apply for your official California Insurance License and National Producer Number (NPN).

License fees

The life insurance license cost varies from state to state in the U.S. The application fee for a life insurance license in California often exceeds $150. The California life insurance exam fee is $88, which must be paid at the time of reservation by credit card, debit card, or voucher.

The pre-licensing education requirements in California include 20 hours of life insurance pre-licensing education and 12 hours of ethics and California Insurance Code training to satisfy the state's 32-hour pre-licensing education requirements. The fee for fingerprinting services is $59 plus the $17 FBI processing fee, the $32 Department of Justice processing fee, and the $10 CDI contractor rolling fee. The total processing fee for PSI's fingerprint impressions is $68.95, including the $17 FBI processing fee, the $32 Department of Justice processing fee, and a $19.95 CDI contractor rolling fee charged at PSI’s test centers.

After completing the prelicensing course, you will be issued a Certificate of Completion that is valid for 3 years. You must then pass the state licensing exam with a score of 60% or higher. There is an additional fee to retake the exam if you fail. After passing the exam, you can apply for your official California Insurance License and National Producer Number (NPN). The NPN is a unique identifier that can be used to track you or your business entity in the national database of insurance producers.

Frequently asked questions